Why CBDCs Will Likely Not Support Full Smart Contracts: A Requirements Analysis Perspective

Abstract

This paper examines the compatibility of full smart contracts with Central Bank Digital Currencies (CBDCs), emphasizing the constraints imposed by CBDCs' account limits and exploring this challenge through a requirements engineering lens. We analyze how these limits, essential for financial stability, inherently restrict the programmability of CBDCs, potentially limiting their utility in leveraging blockchain's full capabilities. By integrating a requirements analysis perspective, we offer a nuanced understanding of the system's needs, highlighting the trade-offs and implications for the design and functionality of CBDCs. This approach enriches the discourse by underscoring the importance of structured requirements practices in developing financially stable and technologically advanced CBDCs.